ENTREPRENUERSHIP AND SOCIAL WELFARE

MEANING

ENTREPRENEUR

An Entrepreneur is an individual who efficiently and effectively combines the four

factors of production. Those factors are land (natural resources), labor (human

input into production using available resources), capital (any type of equipment

used in production i.e. machinery) and Enterprise (intelligence, knowledge, and

creativity.)

Entrepreneurship is often difficult and tricky, as many new ventures fail. Is often.

Most commonly, the term entrepreneur applies to someone who creates value by

offering a product or service. Entrepreneurs often have strong beliefs about a

market opportunity and organize their resources effectively to accomplish an

outcome that changes existing interactions.

Business entrepreneurs are viewed as fundamentally important in the capitalistic

society. Some distinguish business entrepreneurs as either "political entrepreneurs"

or "market entrepreneurs," while social entrepreneurs' principal objectives include

the creation of a social and/or environmental benefit.

The Enterprise can be set up in designated industrial areas, where infrastructure

facilities are available and is near to the market identified. It can also be set up in

any other area depending upon nature of activity and local municipal rules.

Entrepreneurship is the practice of starting new organizations or revitalizing

mature organizations, particularly new businesses generally in response to

identified opportunities. Entrepreneurship is often a difficult undertaking, as a vast

majority of new businesses fail. Entrepreneurial activities are substantially

different depending on the type of organization that is being started.

Entrepreneurship ranges in scale from solo projects (even involving the

entrepreneur only part-time) to major undertakings creating many job

opportunities. Many "high-profile" entrepreneurial ventures seek venture capital or

angel funding in order to raise capital to build the business. Angel investors

generally seek returns of 20-30% and more extensive involvement in the business.

Many kinds of organizations now exist to support would-be entrepreneurs,

including specialized government agencies, business incubators, science parks, and

some NGOs.

Social welfare

Welfare refers to a broad discourse which may hold certain implications regarding the provision of a minimal level of wellbeing and social support for all citizens without the stigma of charity. This is termed "social solidarity". In most developed countries, welfare is largely provided by the government, in addition to charities, informal social groups, religious groups, and inter-governmental organizations. In the end, this term replaces "charity" as it was known for thousands of years, being the act of providing for those who temporarily or permanently could not provide for themselves.

History

ENTREPRENEURSHIP

Barter system & currencyCaste SystemAgricultureEducationColonial ruleManaging agentsFounder EntrepreneursTrader community SSI developmentReforms in 1990’sLiberalizationIndia Multinationals and Joint Ventures

Social welfare

The concept of charity goes back to ancient times, and the practice of providing for the poor has roots in many major ancient civilizations and world religions.Social work has its roots in the social and economic upheaval wrought by the Industrial Revolution, in particular the struggle of society to deal with poverty and its resultant problems. Because dealing with poverty was the main focus of early social work, it is intricately linked with the idea of charity work, but it must now be understood in much broader terms. For instance it is not uncommon for modern social workers to find themselves dealing with the consequences arising from many other 'social problems' such as racism, sexism, homophobia, and discrimination based on age or on physical or mental ability. Modern social workers can be found helping to deal with the consequences of these and many other social maladies in all areas of the human services and in many other fields besides.Whereas social work started on a more scientific footing aimed at controlling and reforming individuals (at one stage supporting the notion that poverty was a disease), it has in more recent times adopted a more critical and holistic approach to understanding and intervening in social problems. This has led, for example, to the re conceptualization of poverty as more a problem of the haves versus the

have-nots rather than its former status as a disease, illness, or moral defect in need of treatment. This also points to another historical development in the evolution of social work: once a profession engaged more in social control, it has become one more directed at social empowerment. That is not to say that modern social workers do not engage in social control (consider for example statutory child protection workers), and many if not most social workers would likely agree that this is an ongoing tension and debate.

ADVANTAGES:

ENTREPRENEURSHIP

Every successful entrepreneur brings about benefits not only for himself/ herself but for the municipality, region or country as a whole. The benefits that can be derived from entrepreneurial activities are as follows:

1. Enormous personal financial gain.2. Self-employment, offering more job satisfaction and flexibility of the work

force.3. Development of more industries, especially in rural areas or regions

disadvantaged by economic changes, for example due to globalization effects.4. Encouragement of the processing of local materials into finished goods for

domestic consumption as well as for export.5. Income generation and increased economic growth.6. Promotion of the use of modern technology in small-scale manufacturing to

enhance higher productivity.7. Encouragement of more researches/ studies and development of modern

machines and equipment for domestic consumption.8. Development of entrepreneurial qualities and attitudes among potential

entrepreneurs to bring about significant changes in the rural areas.9. Freedom from the dependency on the jobs offered by others.10. The ability to have great accomplishments.

Social welfare

Govt takes good care of all infrastructure because of high revenue

Universal health care

Less competitions

Good lifestyles while on welfare waiting for employment

The role of government in supporting entrepreneurship

Small and Medium-sized Enterprises (SMEs) in market economies are the engine of economic development. Owing to their private ownership, entrepreneurial spirit, their flexibility and adaptability as well as their potential to react to challenges and changing environments, SMEs contribute to sustainable growth and employment generation in a significant manner.

 SMEs have strategic importance for each national economy due a wide range of reasons. Logically, the government shows such an interest in supporting entrepreneurship and SMEs. There is no simpler way to create new job positions, increasing GDP and rising standard of population than supporting entrepreneurship and encouraging and supporting people who dare to start their own business. Every surviving and successful business means new jobs and growth of GDP.

Therefore, designing a comprehensive, coherent and consistent approach of Council of Ministers and entity governments to entrepreneurship and SMEs in the form of government support strategy to entrepreneurship and SMEs is an absolute priority. A comprehensive government approach to entrepreneurship and SMEs would provide for a full coordination of activities of numerous governmental institutions (chambers of commerce, employment bureaus, etc.) and NGOs dealing with entrepreneurship and SMEs.  With no pretension of defining the role of government in supporting entrepreneurship and SMEs, we believe that apart from designing a comprehensive entrepreneurship and SMEs strategy, the development of national SME support institutions and networks is one of key condition for success. There are no doubts that governments should create different types of support institutions:

i)  To provide information on regulations, standards, taxation, customs duties, marketing issues;

ii)  To advise on business planning, marketing and accountancy, quality control and assurance;

iii)  To create incubator units providing the space and infrastructure for business beginners and innovative companies, and helping them to solve technological problems, and to search for know-how and promote innovation; and

iv) To help in looking for partners. In order to stimulate entrepreneurship and improve the business environment for small enterprises.

Training

Basic training differs from product to product but will necessary involve sharpening of entrepreneurial skills. Need based technical training is provided by the Govt. & State Govt. technical Institutions.

There are a number of Government organizations as well as NGOs who conduct EDPs and MDPs. These EDPs and MDPs and are conducted by MSME's, NIESBUD, NSIC, IIE, NISIET, Entrepreneurship Development Institutes and other state government developmental agencies.

Marketing Assistance

There are Governmental and non-governmental specialized agencies which provide marketing assistance. Besides promotion of MSME products through exhibitions, NSIC directly market the MSME produce in the domestic and overseas market. NSIC also manages a single point registration scheme for manufacturers for Govt. purchase. Units registered under this scheme get the benefits of free tender documents and exemption from earnest money deposit and performance guarantee.

Promotional Schemes

Government accords the highest preference to development of MSME by framing and implementing suitable policies and promotional schemes. Besides providing developed land and sheds to the entrepreneurs on actual cost basis with appropriate infrastructure, special schemes have been designed for specific purposes like quality up gradation, common facilities, entrepreneurship development and consultancy services at nominal charges.

Government of India has been executing the incentive scheme for providing reimbursement of charges for acquiring ISO 9000 certification to the extent of 75% of the cost subject to a maximum of Rs. 75,000/- in each case. ISO 9000 is a mechanism to facilitate adoption of consistent management practices and production technique as decided by the entrepreneur himself. This facilitates achievement of desired level of quality while keeping check on production process and management of the enterprise.

Concession on Excise Duty

MSME units with a turnover of Rs. 1 crore or less per year have been exempted from payment of Excise Duty. Moreover there is a general scheme of excise exemption for MSME brought out by the Ministry of Finance which covers most of the items. Under this, units having turnover of less than Rs. 3 crores are eligible for concessional rate of Excise Duty. Moreover, there is an exemption from Excise Duty for MSME units producing branded goods in rural areas

Credit Facility to MSME

Credit to micro, small and medium scale sector has been covered under priority sector lending by banks. Small Industries Development Bank of India (SIDBI) has been established as the apex institution for financing the MSME. Specific schemes have been designed for implementation through SIDBI, SFCs, Scheduled Banks, SIDCs and NSIC etc. Loans up to Rs. 5 lakhs are made available by the banks without insisting on collaterals. Further Credit Guarantee Fund for micro, small and medium enterprises has been set up to provide guarantee for loans to MSME up to Rs. 25 lakhs extended by Commercial Banks and some Regional Rural Bank.

Policies and Schemes for Promotion of MSME Implemented By State Governments

All the State Governments provide technical and other support services to small units through their Directorates of Industries, and District Industries Centers. Although the details of the scheme vary from state to state, the following are the common areas of support.

1. Development and management of industrial estates2. Suspension/deferment of Sales Tax3. Power subsidies4. Capital investment subsidies for new units set up in a particular district5. Seed Capital/Margin Money Assistance Scheme6. Priority in allotment of power connection, water connection.7. Consultancy and technical support

Government of India runs a scheme for giving National Awards to micro, small and medium scale entrepreneurs providing quality products in 11 selected industry groups of consumer interest. The winners are given trophy, certificate and a cash price of Rs. 25000/- each.

Non-government of organizations (NGO’s)

Social welfare

India has a long tradition of social service, social reform and voluntary agencies. NGOs emerged in India soon after Independence when Mahamata Gandhi made a plea for dissolving the Indian National Congress (the political party which came into power upon Independence), and transforming it into a Lok Sevak Sangh (Public Service Organization). This plea was, however, rejected; nevertheless, it did not halt the formation of non-governmental organizations in India. Many Gandhi followers established voluntary agencies to work closely with the governmental programs on social and economical issues. These agencies organized handicrafts and village industries, rural development programs, credit cooperatives, educational institutions, etc.

The second stage of growth of NGOs in India was around 1960 when many individuals noticed that the governmental programs seemed to be inadequate to deal with the deprived sections of India. These groups formed organizations that worked on behalf of the poor, the landless, the tribals, the bonded labourers, and many other social groups that were being discriminated against by the policies of

the state and social structure. These grass roots organizations work at the micro-level and work with limited resources and lack of coordination.

Since Independence in 1947 until around 1980 there was little effort on the part of the Indian Government to define the role of a voluntary agency or to recognize its importance. In 1980, however, with the Sixth Five Year Plan (1980-1985), the government identified new areas in which NGOs as new actors could participate in development. These areas included:

1. Optimal utilization and development of renewable source of energy, including forestry through the formation of renewable energy association at the block level

2. Family welfare, health and nutrition, education and relevant community programs in the field

3. Health for all programs

4. Water management and soil conservation

5. Social welfare programs for weaker sections

6. Implementation of minimum needs program

7. Disaster preparedness and management (i.e. for floods, cyclones, etc)

8. Promotion of ecology and tribal development, and

9. Environmental protection and education.

This plan, nevertheless, was to become the first of a series. Under the Seventh Five Year Plan (1985-1990) the Indian government envisioned a more active role for voluntary organizations to aid in making communities as self-reliant as possible. These groups were expected to show how village and indigenous resources could be used and how human resources, rural skills and local knowledge, grossly underutilized at present could be used for their own development. NGOs because of their situation and interaction with local people can be very effective in bringing change since they are able to address issues that governments are often not able to comprehend. That is, because these organizations work at the grass roots level they are able to sense the urgency of issues and prioritize into the problem solving mode at a quicker pace.

This advantage has also been noticed by the Indian government. In the Eight Five Year Plan the importance of NGOs is further enhanced, paying particular attention

to the role of these agencies as participants in rural appraisal for drawing up development plans at a very low cost and involving the rural community. The plan document states, "A nation-wide network of NGOs will be created. In order to facilitate the working of this network, three schemes relating to the creation, replication, multiplication and consultancy development have been worked out by the Planning Commission."

Today, India has a vigorous NGO sector. Although there has been no complete census of NGOs, it is estimated that about 25,000 to 30,000 are active in India. In fact, as of December 31st, 1989, there were 12,313 NGOs registered with the Ministry of Home Affairs, Government of India under the Foreign Contribution (Regulation) Act (FCRA) 1976; furthermore, 726 NGOs are unregistered but under the prior permission category. One problem with NGOs in India, as with NGOs anywhere else in the world, has been the increasing dependency on governmental funds or donations from external (foreign) donors like the World Bank. This dependent relationship has resulted in a lack of flexibility on the part of NGOs to pick their missions and objectives since many are expected to perform certain tasks in return for funding. But, further still, it has also created structures that have become more bureaucratic in nature and, hence, less effective in development. Nevertheless, NGOs are here to stay and will continue to work in India on political, economical or social issues, the task before before them is how they will manage to produce change will keeping track for governmental documentation.

In the past social welfare had been carried on by voluntary agencies and by philanthropic individuals. Now, Indian has become a welfare state since her freedom. However, the Government is assisting private agencies to enable them to continue their good work. The Government has founded a board called "Central Social Welfare Board" which has its branches in the States. This board was founded in August 1953 as part of the First Five-Year plan of India. The Board is disbursing grant to welfare agencies. The board has welfare extension projects in the rural areas. The Board tries to suppress the immoral traffic in women and children and to provide after-care to the victims of this traffic. The social welfare programmed also relates to juvenile delinquency and beggars. There are correctional institutions for young offenders like reformatory schools where children under sixteen years are put. The borstal schools are meant for those who are more than sixteen years old. The board looks to prohibition, backward classes, scheduled castes, scheduled tribes and the criminal tribes. Under the British rule, a number of lawless tribes were blessed as "Criminal" and were generally segregated. In August 1952 the Criminal Tribes Acts were repealed. The Board is

trying to educate these people and improve their economic condition in order to wean away their children from anti-social practices.

CONCLUTION

ENTREPRENEURSHIP

Government accords the highest preference to development of MSME by framing and implementing suitable policies and promotional schemes like policies and promotional schemes, providing incentives for quality up gradation, concession on excise duty and provides technical supportive services. Thus Government play supportive role in developing entrepreneurs.

SOCIAL WELFARE

Every student should prepare himself to do the social welfare. People should co-operate with the Government to affect the social welfare programmed.

Entrepreneurship and Management of Small and Medium Enterprises

TYBMS

GROUP MEMBER

RASIKA GARATE 28

REEMA NEGI 42

PRIYANKA GHAG 45

AKANKSHA TAWDE 46